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Jakarta Post

PGN channels cheap gas to Unilever in N. Sumatra

  • Norman Harsono

    Jakarta

Jakarta   /   Tue, July 7 2020   /  01:00 am
PT Unilever Oleochemical Indonesia's (UOI) factory sits surrounded by palm oil plants in the Sei Mangkei Special Economic Zone (SEZ), North Sumatra. UOI is owned by PT Unilever Indonesia Tbk.(Unilever Oleochemical Indonesia/Unilever Oleochemical Indonesia)

Top national gas distributor PGN is channeling price-reduced natural gas to a major oleochemical plant in North Sumatra owned by a subsidiary of consumer giant PT Unilever Indonesia, giving a boost to the plant’s production. PT Unilever Oleochemical Indonesia (UOI), which owns the plant in Sei Mangkei Special Economic Zone (SEZ), has been paying US$6 per million British thermal unit (mmbtu) of gas since June 1. It was paying $8 per mmbtu before the government offered the price incentive. “Eighty-five percent of our products are exported so we can become more competitive,” Sancoyo Antarikso, corporate secretary of PT Unilever Indonesia, told The Jakarta Post on Friday. The Rp 2 trillion (US$137.6 million) plant, which began operations in 2015, processes crude palm oil into 200,000 tons of oleochemicals each year. The chemicals are processed into soap, s...